Capitalism works on the principles of supply and demand. In the investment world, shareholders demand a minimum top line growth of at least 4% a year. That means simply to meet expectations, a $50 billion dollar multinational must supply $ 2 billion dollars in new business, plus whatever the impact of price cutting is on their core business. The next year they need to find another $2.1 billion.
Innovation has to be their lifeblood, but the sheer magnitude of the task will force them to rethink the way they conduct research, invent, and commercialize within their four walls. Navin Chandaria, one of the smartest individuals I know, once told me that if an Elephant tries to hatch an egg, he will smash it. Flexibility and nurturing are key, and they work best small.
This is why it's such a great time for entrepreneurs. Those that can conceive, incubate and hatch eggs of innovation, and can then use social networks to directly connect with multinationals desperate for ideas.
- Tony Chapman @tonychapman
So, if I read you correctly, what you're saying is that the Elephant should buy a company that develops egg incubators.
Posted by: Alexi | January 28, 2010 at 05:58 PM
Or buy freshly-hatched eggs, rich with succulent ideas.
Posted by: Hitsamty | January 29, 2010 at 04:59 AM